EBD 380 Ch. 4

Opportunity

an occasion or situation that makes it possible to do something that you want to do or have to do, or the possibility of doing something

a possibility of generating value through the introduction of unique, novel, or desirable products, services, and even processes that have not been previously exploited in a particular context

can be a new product or service, new market, new channel of distribution, new means of production or supply, or new way of organizing

Potential economic value, novelty, desirability

3 characteristics of business opportunity

Value

economic, social, personal, societal

Novelty

product/service, location, mode of delivery, etc.

idea

can become an opportunity if it demonstrates the three characteristics (value, novelty, desirability)

Innovation

high degree of novelty, high value and usefulness

want to focus on this

Invention

high degree of novelty; low value and usefulness

Improvement

low degree of novelty; high value and usefulness

Irrelevant

low degree of novelty; low value and usefulness

Generate a lot of ideas

The first step in identifying a solid opportunity is to    

The myth of the isolated inventor

first misconception of ideas

ex: Orville and Wilbur Wright did not come up with the idea for airplanes alone

they took inspiration from others and they were a team

The worth of ideas themselves

second misconception around ideas

the execution of an idea is just as important as the idea itself

Scanning

first way of generating ideas

opportunities and ideas for businesses may be everywhere, but these are only detected by some entrepreneurs

entrepreneurs who have alertness and some amount of prior knowledge are said to be better at detecting ideas

Alertness

the state of being ready to think, notice, understand, and act in a particular situation

Prior knowledge

includes education, work experience, and lived experience in a particular market or industry that an entrepreneur can apply to their business

Connecting

second way of generating ideas

consciously making links between concepts to create new concepts

Bisociation

connecting two unrelated things

Pattern recognition

recognizing patterns in what we see to make sense of situations, enabling us to make decisions

Lateral thinking

third way of generating ideas

using indirect and creative approaches to solve problems

finding a better solution

less obvious approaches

creation of the new conclusion

Imagination-based strategies

fourth way of generating ideas

involve suspending disbelief and dropping constraints in order to create unrealistic states or fantasies”

Observing

fifth way of generating ideas

we all view the world, but shifting how we view the world can help generate ideas

considering things from someone else’s perspective can provide insight into problems they face and what we may do to solve them

Collaborating

sixth way to generate ideas

Brainstorming

process of coming up with a lot of ideas in a short amount of time and suspending judgment on them until after the session ends

Nominal group technique

more structured form of brainstorming

group members come up with ideas on their own

group members come together and discuss ideas one by one, clustering together similar ideas

group members then vote on which clusters of similar ideas seem most promising

after the most promising cluster is chosen, the ideas in that cluster are investigated or combined

Valuable, rare, inimitable, organized

What makes an idea favorable/sustain competitive advantage?

Not valuable

competitive disadvantage

Not rare

competitive parity

Not inimitable

temporary competitive advantage

Not organized

unused competitive advantage

Finding opportunities

first step in opportunity identification

assumes that opportunities exist independent of entrepreneurs and are waiting to be found

common when an entrepreneur sees a problem or a gap and creates a solution

Searching for opportunities

second step in opportunity identification

used when entrepreneurs are not quite sure what type of venture they want to start, so they engage in an active search to discover new opportunities

usually starts with something people are passionate about and know a lot about — think about your “why” statement

Effectuating opportunities

third step in opportunity identification

more about creating opportunities than about simply uncovering them

involves considering what skills and resources you have now and how you can use those to create the future rather than trying to predict and hedge against the future

what you know, whom you know, and who you are

Designing opportunities

fourth step in opportunity identification

the most complex pathway but it may create the most value

entrepreneur is focusing on customers’ unmet needs – specifically, latent needs

Latent needs

needs we have but don’t know we have

IDEATE method

can help you generate lots of ideas and weed out ideas unlikely to be solid opportunities

Identify

“I” in IDEATE

identify problems that customers are currently trying to solve—and are spending money to solve—but are still not solved to the customers’ satisfaction. Also identify the underlying causes of the problem.

Migraine headache problems

problems that need to be solved and that people are willing to pay for

Discover

“D” in IDEATE

actively search for ideas that leverage your passions, experiences, and areas of curiosity

what are your views, perspectives, and experiences of the world

spend time learning about some of your favorite activities

Enhance

“E” in IDEATE

add innovation and novelty to enhance existing products, services, processes, or business models

Anticipate

“A” in IDEATE

anticipate change and trends and how they will impact existing and future markets

Social or demographic change

Under “anticipate”

such as aging populations, immigration/emigration, lifestyles

Technological change

Under “anticipate”

such as generative AI, improvements in batteries, green energy sources

Political or regulatory change

Under “anticipate”

antitrust action, workplace regulations, climate legislation

Market or industry change

Under “anticipate”

economic shifts, consumer behavior changes

Target

“T” in IDEATE

explore an addressable target market and identify its unmet needs

instead of thinking about building a product/service and hoping people will buy, start with the people

Evaluate

“E” in IDEATE

practice scoring and selecting higher-quality ideas while also avoiding confirmation bias and excessive optimism

Substitute

“S” in SCAMPER

what can i substitute or change in my product, problem, process? what can be replaced?

Combine

“C” in SCAMPER

how can i combine 2 or more parts of my product, problem, process, to achieve a different product, problem, or process?

Adapt

“A” in SCAMPER

what can i adapt in my product, problem, process? what can be added?

Modify/magnify

“M” in SCAMPER

what can i modify or put more or less emphasis on in my product, problem, or process?

Put to other uses

“P” in SCAMPER

what are new ways to use the product, service, or process?

Eliminate/reduce

“E” in SCAMPER

what can i modify or put more or less emphasis on in my product, problem, or process? what can be removed or simplified?

Reverse/rearrange

“R” in SCAMPER

how can i change, reorder, or reverse the product or problem? what can be swapped or flipped

First-person opportunities

defined by our own personal lens through which we view the world... and are limited to our immediate environment and daily life

since they come from us and our environment, we know more about them and their context

may be easier to implement and less risky, but also less innovative

Third-person opportunities

focus on a much broader spectrum of significant problems or MHPs to solve for consumers

more risk and uncertainty, but potential to be more innovative and impactful